MAIB IS READY TO SATISFY SHAREHOLDERS’ AMBITIONS – SERGIU CEBOTARI

Interview of the Moldova Agroindbank Chairman of the Board Sergiu Cebotari to Infotag: the MAIB broke several records in 2019 – 703 million lei net profit, 3.2 thousand lei – market price of shares, 4.2 thousand lei – balance cost of a share.

Question: Mr. Cebotari, your bank concluded 2019 with impressive results. As the general shareholders meeting is approaching, the first question is about the perspective of dividend payment.

Answer: The MAIB commercial bank concluded 2019 with financial results, worthy the leading bank. We have distanced ourselves from the main competitors, strengthening positions on the main rates: assets, deposits, credits, profit. The MAIB is holding 28.6% assets. Our share in crediting is of over 35% and around 30% in deposits. These indicators demonstrate clients and partners’ trust in Moldova Agroindbank.

We registered the highest profit both in the bank history’s, and in the history of Moldova’s entire banking sector. This affected the cost of the MAIB shares: with nominal value of 200 lei, their real price in late 2019 reached 3.2 thousand lei.

The MAIB has sufficient force and capitalization both for paying dividends and for ensuring development in mid-term and long-term perspective. We are concluding the preparation of information for including into a stress-test, the results of which will become the basis for application to the National Bank on preliminary capital distribution.

Q: What did the MAIB do in 2019 to remain a competitive bank?

A: The digital technologies is not only a trend for the MAIB, it is a vital and everyday need for our clients. We were giving particular attention to this segment: we issued mobile application MAIBank for physical persons, developed the MAIBusiness for legal persons. The bank is accessible to clients 24 hours/day and 7 days per week.

The MAIB clients have the possibility to get the bank in their pocket and to fulfill most operations in a simple and easy way, remotely. We live in the age of great speed and it is important for us, as a leading bank, to keep pace with the global trends. We will be setting the tone on the market, for which we will continue movement in the set direction. This is connected with additional investments in digitization and security. But this is what allows the MAIB to be a fully competitive bank.

Due to the signing in 2019 of a number of important agreements with international development partners – the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), we attracted credit lines. The EU4Business, the Trade Promotion Program, the Moldovan Orchards – all these are new opportunities for clients: profitable tariffs, benefits, grants, a wide specter of financing, consultations for project implementation. The harmonization of relations with our clients has always been and will be a basis for the MAIB competitiveness.

Q: Do the modernization and implementation of competitive services demand internal changes in the bank?

A: The word “transformation” is most concisely characterizing the MAIB. In 2019 we prepared ground for new approach in certain segments, which allowed the bank to start reforms and modernization. It is about the automation of processes, which is necessary for business module improvement.

We have started the implementation of the inclusive system of administrating relations with clients – the CRM. The bank hopes to better understand the clients’ needs and to properly correct their actions on satisfying them. Moreover, this concerns both classes and groups of clients and each client in part.

The automation of processes in crediting will soon allow the bank to work with a higher speed and efficiency in the regime of production line. We have reorganized the contact center service, equipped with operational systems, which allows consulting clients and making sales of bank services.

We draw attention to digital technologies, implementing them into bank processes. In this direction, we are the first in the country, moreover that banks with foreign capital are receiving and implementing such decisions from their mother institutions, which is much easier for them.

Question: Changes are impossible without transformations in the field of human resources?

Answer: Transformations are connected both with the bank's corporate culture, and with employees' professional qualities. The complex automation of processes allowed raising the speed of checking credit files, issuing consumption credits in record time. However, for efficient application of this system, transformation at the level of employees' mentality is also necessary.

We are often forced to change 180 degrees our view about the way of conducting bank activity. I will not hide that this is a difficult process both for front office employees and for the back office employees. We find arguments, convincing employees that transformation is necessary for progress in the bank, that they are useful for personal development and welfare.

On the other hand, we understand the bank development should meet the level of produce consumers' education. Unfortunately, we have shortcomings here. We see positive dynamic of the growth of using mobile applications and internet-banking. The bank has increased the share of cashless payments via bank cards to 21.8% from 4.4%. This is a positive dynamic, but it is insufficient so far.

Infrastructure, necessary for rapid banking, exists, but clients do not have sufficient awareness about the efficiency, usefulness and convenience of such service. Here, we return to the topic of financial education. For me it is quite strange to see young people with latest generation smartphones waiting in lines to pay the bills. I understand that the adaptation to technologies demands time for old-age people, but for people of working age this should become a norm.

Q: What should be done to raise the investment activity of banks? Is it necessary to attract funds in implementing projects important for the country's economic growth?

A: The development of the banking sector directly depends on the country's economic development and vice versa. It is perfect when banks' proposal meets economy needs. However, today the supply exceeds the demand.

What should banks do in such a situation? They should make proposals on improving products and services in order that the businesses to be able to use it. Banks may push businesses to development, while the business environment - may propose viable and efficient projects for financing.

However, for implementing such projects, the businesses should have power/ Banks are just a part, an important one, but still a part of the economic engine. In order the engine to be operating to full capacity, all its mechanisms should be spinning with equal speed.

Q: The MAIB ownership structure underwent changes. How had these influenced the bank development strategy?

A: The MAIB entered 2019 with a new structure of shareholders, after the HEIM Partners investment consortium bought 41.09% shares. The consortium is made of the EBRD, Horizon Capital (USA) and Invalda INVL (Lithuania) as financial investors. The valuable contribution of these investors is their experience and knowledge.

The vision of new shareholders influenced the 2020-2024 bank development strategy, the distinction of business directions, the approach to sales, the organizational structure. As a result, all this materializes into MAIB bank service quality, an efficient model of business and new vision of the banking activity in general.

Our development strategy contains goals with great ambitions that will help the bank to achieve success in the competitive environment. Meanwhile, the MAIB plans to maximally satisfy the clients' needs. The bank has entered the new decade of the 21st century with a clear vision of its future the bank intends to be building in rapid, decisive and secure actions.

Q: We wish success in implementing the MAIB strategy.

A: We are sure we will be successfully implementing this strategy. The MAIB is firmly on its feet and has sufficient potential for intensive cooperation. We are aware about the character of the market we are working on. Thus, we change the approach to the business model. We re-oriented many directions on which we focus our attention, experience and resources. The bank is conducting a structural reform, aimed at ensuring better interaction with clients. I am sure this will give us deeper understanding of each client's needs to build a better future in Moldova together.

We are not idealists. A very important thing we are bearing in mind is the changing reality. We understand the peculiarities of the market and the country. The bank team has an understanding that we should be qualified and flexible, should accelerate the bank development and stimulate businesses to a sustainable growth.

A reliable, transparent, integrated banking sector is aimed at assuming a special role in the country development. In the new decade, we have to demonstrate that a well-thought plan is accomplishable due to the insistence, consistency and the level of trust. With the team of Moldova Agroindbank, even the most ambitious goals are achievable.

Q: Thank you for the interview, Mr. Cebotari!